As EU considers Russian energy embargo, Kremlin warns of consequences

There is growing pressure within the European Union (EU) to join the United States and Britain in targeting Russia’s lucrative energy sector, but the Kremlin has warned that an embargo on Russian oil would mean a hard hit for Europe’s already rattled economy.

Although the EU receives about 40% of its gas from Russia, the Kremlin’s siege and bloody bombardment of civilian targets in the port city of Mariupol – which EU foreign policy chief Josep Borrell called “a massive war crime” – has led many policymakers to consider immediate action, CNN Business reported.

"Looking at the extent of the destruction in Ukraine right now, it's very hard to make the case that we shouldn't be moving in on the energy sector, particularly oil and coal," Irish Foreign Minister Simon Coveney told reporters on Monday.

Similarly, Lithuania’s Foreign Minister Gabrielius Landsbergis said, "It's unavoidable we start talking about the energy sector, and we can definitely talk about oil because it is the biggest revenue to Russia's budget."

But despite a desire to punish the Kremlin for its illegal war on its southern neighbor, diplomats have warned that major players within the bloc are wary of acting too quickly because of already high energy prices and sanctions on Russian coal and gas could be “red lines” for many governments.

There are also fears that Moscow could soon retaliate to existing sanctions by restricing exports of natural gas and Russian Deputy Prime Minister Alexander Novak said earlier this month that Russia could shut off the Nord Stream 1 pipeline, effectively cutting off the flow of gas to Germany as retribution for Berlin’s blocking of the new Nord Stream 2 pipeline project.

On Monday, however, Russian officials have warned that Europe would be suffer greatly if it were to embargo Russian oil – a move which Kremlin Spokesperson Dmitry Peskov said, “would very seriously impact the global oil market, very badly impact energy balance on the European continent.”

Peskov also said that such sanctions would not hurt the U.S., leaving Europe a difficult choice to make.

"Americans would remain as they are and would feel much better than Europeans (in the event of oil embargo). This would be hard for Europeans - such a decision would hit everyone," Peskov said.